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H M Ansoff

ANSOFF MATRIXTo analyse the marketing strategies of H&M we are using the Ansoff Matrix. It is a tool that helps businesses decides their product and market growth strategy (Jobber and Fahy, 2003). Ansoff matrix consists of product development (Selling new products to existing customers), market penetration (Selling more of the same to the same types of people), market development (Selling the existing products to new types of consumer) and diversification (Selling new products to new consumer) . (Harvard Business Review Strategies,1998) To relate Anoff with H&M we will start off with Market Penetration. As we have studied H&M’s Product Portfolio consists of Clothing, Household and Cosmetics(Fashion united, 2006). H&M should encourage its current customers to buy more. H&M should introduce new items frequently, which keeps customers coming back again and again to check out the latest styles. It should have a unique selling point for its products which should differentiate it products from some other competitive businesses such as Gap and Zara (H&M facts, 2006). A drawback of H&M compared to Zara is that quarter of its stock is made up of fast-fashion items that are designed in-house and farmed out to independent factories while its competitor move quickly through the stores and stock is replaced often by fresh designs. One the other hand H&M keeps large stock which increases cost and can result in wastage if fashion changes. H&M should bring in new and unique things frequently and respond to changes in fashion. Advertising is another component to penetrating in the market as it convinces customers and reminds them about the products (Business Week Online, November 11, 2002) Product Development for H&M would be to launch a new product in the existing market. H&M should consider new production possibilities. Products with new features should be developed. For example, Cosmetic products with different shades and unique...

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... T2242531
Introduction
H&amp;M (Hennes &amp; Mauritz) is a global fashion brand and retail clothing company founded in Sweden, 1947 by Erling Persson. H &amp; M founder Erling Persson because of a U.S. tour, inspired him to open a low price, high-class women's fashion clothing store ideas. (“H&amp;M offers fashion and quality at the best price”, 2011)
The first Hennes opened in Vasteras, which is the predecessor of H&amp;M. In 60s, he expanded Hennes in most parts of Sweden, developed new markets in neighboring Norway and Denmark in 1964 and 1967. In order to expand the market share and product lines in Stockholm, Persson acquired a company called Mauritz Widforss, firearms and hunting supply stores to get the men`s clothing business for Hennes. After that, Persson renamed as Hennes &amp; Mauritz and still in use. Until the 21st century, H&amp;M began to expand business in Asia. It has over 2,300 stores in 41 countries and as of 2011 employed around 87,000 people for now. H&amp;M designer collaborations with plenty of famous designers and celebrities, such as Karl Lagerfeld, Roberto Cavalli, Stella McCartney, Comme des Garcons, Viktor &amp; Rolf, Madonna, Lanvin and Sonia Rykiel....

...INTRODUCTION.
•
Created Sweden in 1947 by Erling
PERSSON
•
Hennes & Mauritz AB, better known
under the name of H & M is a company
of international fashion, guided by
innovative and responsible design.
•
Since 1947, H&M has evolved and
adapted with the times.
INTRODUCTION.

TARGETED CUSTOMERS
H & M offers all styles, from the latest
trends to the basic essential, both for the
woman, man or child,

H&M present on different markets
. Clothing
. Footwear
. Accessories
. Cosmetics
. Interntal decor
INTRODUCTION.

Developments and H & M locations worldwide
Collaboration with :

Designers such as Karl Lagerfeld, Viktor & Rolf

Stars like Madonna or Katy Perry.
Considerable expansion:

More than 2,850 outlets in 53 countries.

Over 116,000 employees.

A turnover of $21 billion.

Biggest markets : USA, UK, Germany, Sweden.
Over 197 stores in France.
INTRODUCTION
 Manufacturing and textile production
H & M has no factory but works with 900 suppliers, primarily located in Asia and
Europe.
 General strategy of H & M
Offer fashion and quality at the best price
Increase annually by 10 to 15% the number of its stores worldwide
EXTERNAL ANALYSIS
SWOT ANALYSIS
• Low quality clothing
• Dependent on suppliers
located usually in the Far
East
• Lack of...

... 8. References
Introduction
This report provides an analysis of the supply chain of H&M and management of that supply chain. A brief company background will be established to better understand the analyses that follow. These analyses will include the structure of the supply chain; key challenges within the supply chain; competitive strategies used to differentiate H&M’s supply chain; value adding activities in the supply chain; and concluding recommendations based on the aforementioned analyses to sustain and strengthen their position in the market place.
Company Background
H&M is a Swedish brand, founded in 1947 in Västerås, Sweden by Erling Persson, which over the years has brought into its product range own-brand clothes, accessories, footwear and cosmetics and caters to women, men, teenagers and children. H&M currently operates as the predominant part of Hennes and Mauritz H&M AB. The H&M Group also owns COS (Collection of Style) targeting an older, more discerning affluent customer and as well as recently acquired FaBric Scandinavien, which includes the chains Weekday, and Monki in addition to the Cheap Monday brand. (H&M Hennes and Mauritz AB 2009)
At the end of the 2008 financial year the H&M group had 1,738 stores in 33...

...inside look will be taken on Hennes & Mauritz AB (H&M). We will analyse on it using PESTEL, Porter’s Five Forces and SWOT to get a clear concept of what H&M is today and where it can go. This positioning will be helpful in strategy designing.
Company activities
H&M was established in Västerås, Sweden in 1947 by Erling Persson. We now sell clothes and cosmetics in around 2.200 stores around the world.
* H&M offers fashion and quality at the best price
* H&M offers fashion for women, men,teenagers and children.
* H&M also sells own-brand cosmetics, accessories and footwear
* H&M doesn't own any factories, but instead buys its goods from around 700 independent suppliers, primarily in Asia and Europe.
* H&M employs about 87000 people
* The turnover in 2010 was 126.966 million
PESTEL analysis
It is a part of the external analysis when conducting a strategic analysis or doing market research, and gives an overview of the different macro-environmental factors that the company has to take into consideration. It is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations.[1]
- Political
Being a Swedish based company, H&M...

...+
H&M
6 October 2012
 
Established by Erling Persson in Sweden in 1947 H & M Group comprises five different independent brands – H&M, COS, MONKI, WEEKDAY, AND CHEAP MONDAY Is represented on more than 47 markets, 2,600 stores all over the world along with over 94,000 employees

 
Fashion and quality at the best price Manufacturing under good working conditions and with limited impact on the environment

To offer products to customers ranging from women, men and young people to children. To offer new items to customers every day
 H & M utilizes matrix structure to manage its organization
 Produce without factory:
H & M has a good long term contracts with its producers and suppliers

Does not work with franchises: All the points of sale are held only by Hennes and Mauritz Does not purchase real estate: H & M rents its store location in order to keep capital free to produce its collections


H & M follows cost leadership strategy & market
expansion strategy In 2012: H & M enters to 5 new markets in Bulgaria, Latvia, Malaysia, Thailand, Mexico Also, opens a total of 257 new stores this year and their goal is increasing 10 to 15 percent of outlets annually


Threat of New Entrant...

...
1. Intro: The H&M Hennes and Mauritz AB Group 2. H&M The Brand 2.1. Company Profile 2.2. Environment of the brand 2.3. Target consumer 2.4. Geographical extension 2.5. Turnover 3. Distribution Strategy 4. Conclusion Bibliography
3 3 3 4 6 6 7 8 10 11
2
1. Intro: The H&M Hennes and Mauritz AB Group
The H&M Hennes and Mauritz AB Group is a Swedish multinational retail company, considered the second retailer in the world after Inditex. Started as the women clothing store Hennes in Västerås in 1947 by Erling Persson, nowadays own about 2800 stores1 in 48 markets 2, and it is employing around 104 000 people3. The group per se is formed in 1968 by the acquisition of fishing equipment store Mauritz Widforss, also in this year the men and children lines are implemented.In 1976 the first store outside Scandinavia opens in London, UK; as a consequence of the success of it, the 80s and 90s will be dedicated to the European expansion, just to be followed by the big worldwide expansion to US (2000), Asia, Middle East and North Africa. By 2013 the range of brands belonging to the group are H&M, H&M Home, COS, Monkey, Weeekday, Cheap Monday and the most recent Other Stories. They target different consumers and have achieved for the company a broad spectrum of potential markets. The actual chairman is Erling...

...Contents
Executive Summary 3
Description of the Organisation 4
PESTEL-Analysis 6
SWOT-Analysis 7
* Strengths 7
* Weaknesses 9
* Opportunities 9
* Threats 10
Ethical behaviour and corporate social responsibility 11
Conclusion 12
Bibliography 13
Executive Summary
H&M is a great company in many aspects. It may be Sweden’s most recognised company after IKEA. It all started with a small women clothing store outside of Stockholm and later grew to be the biggest clothing retail firm that one have yet seen. During this report I will begin with a brief description of the company’s interesting history and end with an overview over its ethical behaviour and corporate responsibility. In the middle of the report I will also conduct a PESTEL- and SWOT analysis to show the company’s external and internal factors.
Description of the Organisation
Hennes & Maurtiz has today 2,206 stores distributed on 38 markets. They had approximately 17,000 employees in 1998. Year 2010, 12 years later, H&M have accomplished to increase their workforce to 87,000 which is more than five times the figures it obtained in 1998. In 2010 their sales landed on roughly 12 billion GBP. This states that sales per employee landed around 138,000 GBP.
Erling Persson founded Hennes in 1947. Hennes was a women clothing store in...

...H &amp; M Hennes &amp; Mauritz AB (H&amp;M) is a Swedish multinational retail-clothing company, known for its fast-fashion clothing for men, women, teenagers and children.
H&amp;M exists in 43 countries and as of 2011 employed around 94,000 people.[2] The first store was opened on the high street of Västerås, Sweden in 1947.[3] It had 2,325 stores at end of 2011 and 2,629 stores at end of August 2012.[4] It is ranked the second largest global clothing retailer, just behind Spain-based Inditex (parent company of ZARA), and leads over third largest global clothing retailer, United States based GAP Inc.
The design team in the company’s Sweden office controls the steps of production, from merchandise planning to establishing specifications, and production is outsourced to approximately 800 factories in Europe and Asia. These facilities are used for horizontal division of labor, rather than being integrated
Locations [edit]
Asia [edit]
The Middle East [edit]
H&amp;M store in the Ginza district in Tokyo, Japan
The company opened its first Asian store (also the company's first franchise) in Dubai, United Arab Emirates, in 2006. It followed with a store in the Salmiya district of Kuwait City, Kuwait. In 2008, it opened its doors in Bahrain, Egypt, Jordan, Lebanon, Morocco, Oman, Qatar, and Saudi arabia.
China [edit]
It expanded into East Asia in March 2007,...